Corn Futures Rise as USDA Cuts Crop Condition Rating More Than Expected

Corn futures on the Chicago Board of Trade (CBOT) gained on Tuesday, reversing from losses in the previous session after a U.S. government report signaled a deterioration in crop health. The move was driven by supply concerns after the weekly assessment fell short of market expectations.

USDA Cites Weather Impact

The U.S. Department of Agriculture (USDA) lowered its rating for the domestic corn crop in its weekly Crop Progress report. Key figures from the report include:

• 63% of the crop was rated in good-to-excellent condition as of Sunday.
• This represents a 4-percentage-point drop from 67% the prior week.
• The new rating came in below the average analyst forecast of 65% good-to-excellent.

The USDA attributed the decline in crop quality to hot and dry weather conditions that have stressed crops across key growing areas in the Midwest.

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Market Reaction and Outlook

In response to the report, CBOT December corn futures (CZ26) were last trading up 1-1/2 cents at $4.75-1/2 per bushel. The price gains, however, were limited by a broader sell-off in the commodities sector, led by a decline in crude oil prices.

Market watchers noted that weather forecasts calling for cooler and wetter conditions across much of the Midwest could temper further price increases. Separately, the USDA announced on Tuesday that private exporters sold 197,272 metric tons of U.S. corn to undisclosed buyers for shipment during the 2026/27 marketing year, providing some underlying support for prices.